Spanish scrap prices have recovered in recent weeks to record levels last seen in January 2012.
The skyrocketing prices are the result of increasing domestic demand and lower availability of material, while sharp hikes in the international market have pushed local traders to bet on exports, Kallanish learns from sources. The domestic market has seen scrap prices rise this week by €20/tonne ($24/t) on-week.
“Domestic prices have risen ‘anarchically’,” says a local trader. “Large Spanish mills need material, but still refuse to buy at current prices. So, most of the material is exported after the latest growth in demand in Turkey.”
According to another source, if Turkish mills continue booking scrap at the current high levels, a new correction in Spain can be expected in the short term.
E8 quality new scrap is now offered in Spain at €350/t delivered. Both E3 and E40 are at €340/t, while E1 is at €300-305/t delivered.
Todor Kirkov Bulgaria